The global miner said Mr Albanese, who has been at the company for more than 30 years and was appointed chief executive in 2007, stepped down by mutual consent, and will be replaced by Sam Walsh, who is currently iron ore chief executive at the group, with effect from today.

Doug Ritchie, who led the acquisition and integration of the Mozambique coal assets in 2011 which has led to the group having to write down $3bn in 2012, has also stepped down by mutual agreement.

Rio Tinto said both men would not receive a lump sum payment, there will be no short-term performance bonus for 2012 or 2013 and there will be not receive a long-term share award for 2013.

While the men stepped down from their roles today, Rio said to ensure handover, they would actually leave the company on July 16.

Taking over as chief executive, Mr Walsh will see his total remuneration package increase by 15pc to AUD$7.8m. His package will include a base salary of AUD$1.9m - a 15pc rise on his current salary and a target annual bonus of 120pc of his base salary and an expected value of long-term share incentive plan at 190pc of his base salary- both of which he receives now.

He will also receive relocation costs to cover his move from Perth, Australia to London and will receive unspecified London housing costs.

In a statement from the group today, it said, as well as Mozambique, it would also have to write-down $10-11bn as a result of reductions in the value of Rio Tinto's aluminium assets (mostly Rio Tinto Alcan but also Pacific Aluminium).

It had planned to shrink the division by hiving off most of its Australian and New Zealand assets for sale, but buyers have not flocked.

Mr Albanese said he declined to be considered for the reward because of what has happened to the FTSE 100 miner's Alcan arm, purchased in 2007 for $38bn shortly before the markets crashed.

As well as announcing a $14bn non-cash impairment charge in 2012, the miner said it also expected to report a number of smaller write-downs of around $500m when it announces its full year results on February 14.

Rio Tinto chairman Jan du Plessis said that a write-down in the scale of the recent Mozambique acquisition was "unacceptable".

"We are also deeply disappointed to have to take a further substantial write-down in our aluminium businesses, albeit in an industry that continues to experience significant adverse changes globally.," he said.

"We are taking decisive action to improve our competitive position further with an aggressive cost reduction plan."

Mr Albanese added: "While I leave the business in good shape in many respects, I fully recognise that accountability for all aspects of the business rests with the CEO."